Smart Contract
A smart contract is a self excecuting computer program on the blockchain that runs automatically when conditions are met.
Quick Reference:
Code on Blockchain. Automatic execution. DeFi, NFTs and DAOs.
Expanded Explanation:
Unlike normal contracts, which require lawyers or banks to enforce, a smart contract is digital and enforces itself. For example, a smart contract can hold funds and release them oonly if both parties agree conditions are met. This automation reduces costs, speeds up transactions and removes the need for trust between strangers. Smart contracts are what make Ethereum and many other projects so powerful, as they allow appps to run entirely on the blockchain.